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Bernstein downgraded Dollar General to ‘market perform’ from ‘outperform’

Bernstein said it sees sales and earnings growth as “less certain” than the past.

“The most obvious reason to stay bullish is DG‘s defensive nature. In a recession, they should do well and hold up when the market collapses. But, we have been terrible at market level calls having been bearish before bearishness was cool. Thus, we cannot in good conscience advocate buying or adding to DG at this level. We do understand and advocate holding DG through any downcycle, but we think a better choice for defensiveness is DLTR.”